In this course you will learn how companies decide on how much debt to take, and whether to raise capital from markets or from banks. You will also learn how to measure and manage credit risk and how to deal with financial distress. You will discuss the mechanics of dividends and share repurchases, and how to choose the best way to return cash to investors. You will also learn how to use derivatives and liquidity management to offset specific sources of financial risk, including currency risks. Finally, You will learn how companies finance merger and acquisition decisions, including leveraged buyouts, and how to incorporate large changes in leverage in standard valuation models.
Upon successful completion of this course, you will be able to:
• Understand how companies make financing, payout and risk management decisions that create value
• Measure the effects of leverage on profitability, risk, and valuation
• Manage credit risk and financial distress using appropriate financial tools
• Understand the links between payout policies and company performance
• Use derivatives and liquidity management to offset financial risks
• Pick an appropriate financing package for an M&A or leveraged buyout deal
This course is part of the iMBA offered by the University of Illinois, a flexible, fully-accredited online MBA at an incredibly competitive price. For more information, please see the Resource page in this course and onlinemba.illinois.edu.

GM

Excellent conclusion from what I learned in the the first course, this makes it more interesting of course, but I would recommend to take both courses, Thanks Almeida

SX

Dec 06, 2018

Filled StarFilled StarFilled StarFilled StarFilled Star

Fantastic Value Adding Course. Very Practical with a lot of good examples. Excellent conceptual breadth and depth also in this course. Highly recommended.

Na lição

Module 4: Financial Management of Acquisitions and R&D

In Module 4, we will apply the financial management tools that we developed in this course to M&A decisions and R&D programs. We will learn how to finance an M&A deal, and how companies choose between cash and stock payments to acquire target companies. We will also discuss the financing of LBOs (leveraged buyouts), and learn how to model a leveraged buyout using Excel. We will then discuss the financial management of R&D programs, with an emphasis on risk management. Specifically, we will learn how to think about the financing of R&D in a dynamic framework that considers the need to make uncertain follow up investments.

Ministrado por

Heitor Almeida

Transcrição

[SOUND] We're close to the finish line. This is the last module of Corporate Finance 2. But I think it's going to be one of the most interesting ones so far. In this module, we're going to apply the tools that we learned in the first three modules to analyze the financing, all the acquisitions, and innovation. We're going to talk about how companies finance M&A, and how companies finance R&D projects, using several examples from the real world. So, you're probably noticing this of course, we are using examples in every module. But, in this one we're going to move even closer to the real world and really talk about some recent deals that happened in the world and the financing of some innovation intensive companies that you see there, Merck, for example, okay? So there's going to be all these disinteresting examples. A lot of detail, I really wanted to get to the bottom of all these examples. So this module is going to be a little bit longer than the previous one, not too much. But fortunately what I did is I made the parts self-contained. So what you can do is you can spend more time focusing on the application that interests you the most. So if you want to learn about private equity, for example, you would focus mostly on parts 4.5 to 4.8, okay? Of course, I think it's all very interesting, so it would be great if you could follow everything. But if you're short on time, you can do some adjustments based on this slide, okay? So in terms of specific topics, you will learn how to differentiate between cash and stock financed M&A deals, how companies finance M&A deals in practice, how to estimate the impact of M&A on a company's financial statement, and how an M&A deal may affect capital structure and payout decisions. Which are two important topics we talked about in Corporate Finance two and now we're going to talk about those topics in the context of M&A. And then we're going to move on to private equity and talk about the specific challenge of how to finance a private equity deal and how to build the leverage buyout LBO model in excel. It's a very common financial model that is used in practice to analyze private equity deals, okay? We're going to use these LBO models to make financial policy decisions. Finally, what we're going to do is, we're going to talk about the financing of R&D, and to develop a risk management framework that allows you to optimize the financing of R&D projects and support value creation through innovation. [SOUND]